JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon’s view in opposition to Bitcoin is extensively identified. The CEO reiterated this on the New York Times DealBook Summit on Wednesday by saying the cryptocurrency is “simply not my cup of tea,” Yahoo! Finance reported.
What Occurred: Dimon has been a vocal critic of Bitcoin previously because of its decentralized nature and no laws. Although he hasn’t modified his view on Bitcoin particularly, his cryptocurrency stance had a softer tone whereas talking on the NYT DealBook summit. He predicts that governments could have stringent laws round cryptocurrencies quickly.
Nevertheless, Dimon is in favor of the underlying blockchain know-how that facilitates the usage of Bitcoin. JPMorgan launched its cryptocurrency, “JPM Coin,” final month for commercial use. The financial institution additionally created a brand new enterprise unit, Onyx, to cope with blockchain and digital foreign money, with Umar Farooq on the unit’s helm.
Whereas cryptocurrency pundits identified that the JPM coin is just not an precise cryptocurrency because of its centralized nature, the financial institution’s transfer into know-how was seen as a wider acceptance of blockchain.
Why It Issues: Dimon’s softer stance exhibits the financial institution’s willingness to heat as much as cryptocurrency and blockchain. The financial institution strikes greater than $6 trillion a day throughout 100 international locations.
Dimon confirmed his assist for blockchain on the summit by saying that will probably be vital to permit individuals to maneuver cash around the globe cheaper. He additionally added that some “very sensible individuals” are investing in bitcoin as of late.
JPMorgan getting on-board with cryptocurrency comes at a vital juncture as bitcoin has surpassed the $18,000 mark and generates much buzz.
Value Motion: JPM shares closed 0.74% decrease at $115.25 on Wednesday.
See Additionally: PayPal Brings Bitcoin Trading To Account Holders, Merchants
Picture Courtesy: Wikimedia
© 2020 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.